Final answer:
Consumers are subject to underwriting for AARP Medicare Supplement Insurance Plans during the initial enrollment period when they first become eligible for Medicare or when switching plans outside designated enrollment periods. The underwriting process assesses the individual's risk for determining eligibility and premium rates. The Affordable Care Act restricts underwriting for preexisting conditions but does not apply to Medicare Supplement Insurance Plans.
Step-by-step explanation:
In states where eligibility underwriting criteria applies for AARP Medicare Supplement Insurance Plans, consumers are subject to underwriting primarily during two periods: when they first become eligible for Medicare and when they may consider switching plans or insurers outside of designated enrollment periods. Underwriting in this context involves a review of the consumer's health status, medical history, and other factors to determine eligibility for a new insurance plan. This process is designed to assess the risk that an individual poses to the insurance company and determine whether coverage can be offered and at what premium rate.
Under the Medicare Supplement insurance guidelines, there is an initial enrollment period during which underwriting is typically not required. This period begins six months before you turn 65 and lasts until six months after you've turned 65. During this time, you can enroll in any Medicare Supplement plan offered in your area without regard to health status. However, if you decide to enroll in a Medicare Supplement plan after this initial period, you may be subject to underwriting, and the insurer may deny coverage or apply a higher premium based on preexisting conditions.
The Patient Protection and Affordable Care Act, sometimes referred to as Obamacare, introduced reforms aimed at restricting the ability of insurers to use underwriting to deny coverage for preexisting conditions, but these reforms apply primarily to health insurance plans in the individual market and not to Medicare Supplement Insurance Plans.